Mixed use properties

Mixed use properties

Article by Daniel Collins

Many properties within many portfolios are likely to be residential, whether they are single occupancy, or for multiple tenancies – such as student lets. But for a fair proportion of landlords, part of their portfolio may be in commercial property. In some cases, this may only have a limited impact, particularly where the use is for offices and the property is of standard construction (meaning that the external walls are made of brick or concrete and the roof is covered in slate or tiles). However, old timber framed buildings or those with thatched roofs are not of standard construction, and neither are many industrial premises, meaning that an insurance company needs to be advised of these accordingly.But what about shops? In most parts of the UK, town centres still consist of shops with accommodation above. In most cases, it is unlikely that there is any significant separation between the two parts – while they may have separate entrances, the floor between them is usually timber. In instances where this is the case, the insurance premium will depend not just on the construction of the premises, but also the nature of the business that occupies the commercial part.Most commercial property will involve higher premiums than domestic ones because the risk of a fire or other insurance claim is generally greater in them. For example, fish and chip shops present an extreme